TOKEN ECONOMICS

SUMMARY
The VARA token ($VARA) is a utility token native to the VARA ecosystem. The primary goal of the

token is to provide a vehicle for secure transactional services on the VARA platform and promote and

expand the ecosystem. VARA provides its own exchange where tokens can be freely traded, with the

value driven by demand and supply, underpinned by the value of on-platform services, underlying

earnings potential from on-platform activities and steady buyback and burn conducted by the

platform team.

This document was prepared to describe the usage of the token and the economics of its token

through various steps.

VARA Token Economics

v1.4 CONFIDENTIAL | PG 1
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
TOKEN
TOPOLOGY

EARNINGS INFLOW EVENT

SUBSCRIPTION CONTENT/PACK SALES ENTRY/ACCESS FEES

VARA

VARA PLATFORM USER WALLET

TOKEN OFFRAMP (VIA EXCHANGE) TOKEN UTILITY

TO SUPPORTED
PAIRS
TO SUPPORTED
FIAT SERVICES INCL.
SUBSCRIPTIONS DIGITAL ASSETS
INCL. TRADING
CURRENCY
VARA: DFT
VARA: BTC

The VARA platform utilizes the Dark Fusion decentralized application development standard to mint,

issue and manage VARA tokens using SCL (Simple Contract Language). The Dark Fusion product

suite functions on the Bitcoin protocol via the Lightning Network and also provides a decentralized

exchange called Dark Fusion DEX. The VARA platform includes direct access to utilize this exchange

enabling exclusive trading of VARA tokens.

VARA Token Economics

v1.4 CONFIDENTIAL | PG 2
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
OVERVIEW OF
VARA TOKEN

TOKEN NAME VARA

Token Ticker (SCL-01) $VARA

NFT Ticker (SCL-02) VARA NFTs

Token Type Utility

Blockchain SCL on Bitcoin via Lightning Network

Max Supply 1,000,000,000 $VARA

Initial Circulating Supply 250,000,000 $VARA

VARA Token Economics

v1.4 CONFIDENTIAL | PG 3
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
GET TO KNOW
OUR FAQS
WHAT IS THE LIGHTNING NETWORK?

The Lightning Network is a second layer for Bitcoin (BTC) that uses micropayment channels to scale the

blockchain’s capability and handle transactions more efficiently and more cheaply. It is a technological

solution designed to solve glitches associated with Bitcoin by introducing off-chain transactions. Its

channel is a transaction mechanism between two parties, in which each can make or receive payments

from the other.

WHAT IS DARK FUSION?

Dark Fusion is a product suite consisting of a smart contract modeling language we call Simple Contract

Modeling Language (SCL), designed to function on the Bitcoin protocol via the Lightning Network. Using

SCL, Dark Fusion has developed the SCL token standard, enabling developers to quickly deploy tokens on

the Bitcoin network, a wallet to easily manage these tokens, a DEX enabling users to trade these tokens

and an Explorer to easily view and track transactions… all on the Bitcoin protocol.

Dark Fusion is the first significant breakthrough in dApp and token development on the Bitcoin network.

VARA will be the first dAPP to utilize this technology developed by Dark Fusion.

WHAT IS SIMPLE CONTRACT LANGUAGE (SCL)

SCL has been developed by Dark Fusion to provide an easy, scalable way to mint and manage smart

contracts on the Lightning Network.

• SCL technology leverages UTXOs as single-use cryptographic seals.

• Allow contracts with updatable states and assets that are bound to UTXOs.

• Bound assets can be sent to a Lightning Network channel and transferred via HTLC routing.

- Resulting in zero compromises to the cryptographic integrity of the asset.

• Easily tokenize assets on BTC Lightning Network and other UTXOs.

- SCL Token Standard – mint and transfer tokens, on any UTXO blockchain.

- NFTs – true NFT support capabilities by embedding byte-data into UTXO.

VARA Token Economics

v1.4 CONFIDENTIAL | PG 4
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
TOKEN
ACQUISITION
VARA TOKENS CAN BE ACQUIRED VIA VARIOUS MEANS INCLUDING:

• Through the direct issue to service providers, funders and founders.

• Direct sale by the platform e.g. through coin offerings or in the form of packs that include tokens.

- Packs can be in the form of once-off purchases or take the form of a subscription which can

provide the user with tokens on a monthly, quarterly or annual basis.

• Through the secondary market on the VARA platform exchange, using fiat currency or supported

crypto to purchase from other holders.

• Directly on Centralized Exchange platforms once listed.

• Directly on Decentralized Exchange platforms including LP incentivization on the VARA DEX.

− Earning tokens through various on-platform actions. Examples of this might include:

- Achievements in games / applications utilizing the VARA platform.

- Time spent in-app or in-game on the VARA platform.

- Providing on-platform products and services to other users. This might include:

• Ecommerce

• Fintech

VARA Token Economics

v1.4 CONFIDENTIAL | PG 5
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
TOKEN
UTILITY
VARA Tokens can be utilized in four primary ways:

• To pay for a variety of services and products on the VARA platform.

• Utilize payments of services and products within the Starvara Game.

• To trade or convert back into fiat currency or supported crypto-currency.

• To earn income through the holding and staking of VARA token.

VARA tokens can be used exclusively on the VARA platform to access an array of services

and digital assets. We are currently developing a gaming line-up that utilizes this functionality,

while also exploring additional services that provide additional utility for these tokens such as

e-commerce, fintech services, food-delivery etc. We are also exploring partnerships with third-

party developers and major content producers to expand and enhance the host of on-platform

services.

Tokens can be converted back into fiat currency by sale through our on-platform exchange, or,

should the holder choose to, one of the other crypto currencies supported by the Dark Fusion DEX.

The third option is to utilize VARA tokens to hold and generate additional income by staking

holdings. The VARA platform features what is termed a “bond-mechanic” to generate income

for holders of VARA tokens that have staked (or provided proof-of-stake) of their VARA token

holdings. In order to access this earnings potential, they also need to hold an Access Key.
Access Keys are non-fungible tokens that can be purchased and traded on the VARA on-platform

exchange. The mechanics of this is discussed in further detail in the Earnings section

VARA Token Economics

v1.4 CONFIDENTIAL | PG 6
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
TOKEN
ALLOCATION
VARA will use VARA token funds to grow the platform and ecosystem. This may include future

program development with the latest technologies in crypto and blockchain, digital security systems,

exchange, and swapping features, and the well-regulation of storage of assets.

Secondly, we plan to invest in partnerships that increase the level of services for our users. Much

of our investment will go towards marketing and operations that support our expansion through

branding, advertising, PR activities, and affiliate and referral programs while providing the best

customer experience.

Third, but by far the largest, VARA token funds will be utilized to develop gaming products and assets

for our VARA app and upcoming space-based MMORPG title Starvara. We have a staggered release of

gaming products that utilize the VARA platform, the first of which is a mobile battle royale game set in

the Starvara universe, launching Q4 2023.

MARKETING PARTNERSHIPS

10.0% 5.0%

VARA TEAM & ADVISORS

FUSION 1 LIQUIDITY
10.0%
20.0%

VARA APP
VARA PLATFORM

15.0%
40.0%

VARA Token Economics

v1.4 CONFIDENTIAL | PG 7
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
 TOKEN VESTING /
ALLOCATION PERCENTAGE
AMOUNT ISSUANCE

Issued over 5 years, as

needed for exchange
Fusion1 Liquidity liquidity needs. Work in
200,000,000 20% conjunction with buy &
Reserve
burn mechanic.

Unlocked over 5 years.

0% pre-issued.
VARA App Allocation and issue
150,000,000 15% based on sale and
services on the platform
and mobile applications.

Includes in-house
and third-party
VARA Platform content,services and
Content, Services 400,000,000 40% gaming titles. Unlocked
& Titles at launch of 2nd game
and vest linear over 5
years thereafter.

12 month lockup
VARA Team &
100,000,000 10% 24 month linear vesting
Advisors
thereafter

Vest equally over 10

live events or major
Marketing 100,000,000 10%
sponsorship events.

Monthly over 24 months

Distributed based on
Partnerships 50,000,000 5% partnership agreements
and requirements.

TOTAL 1,000,000,000 100%

VARA Token Economics

v1.4 CONFIDENTIAL | PG 8
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
TOKEN
ALLOCATION (CONTINUED)
FUSION1 LIQUIDITY RESERVE

20% of VARA tokens will be held in reserve for potential ICO/IDO, liquidity pools etc. The issue of this

stake will be entirely driven by its use in liquidity pools on platform launch.

VARA APP

15% of tokens will be made available to the platform to use/issue as needed/requested.

• Of the 150m tokens that are available to this, approximately 11.4m tokens have been pre-sold and

will be issued at the minting request on the VARA app.

VARA PLATFORM GAMES

40% of VARA reserved for on-platform utilization for various content, services and products such

as games. Issue and allocation depends on the scope and nature of the product or service and their

specific requirements.

VARA TEAM AND ADVISORS

10% Reserved for the Team, Advisors and ESOP.

MARKETING

10% of VARA will be made available to marketing the platform. These will be utilized by the marketing

team for promotion of the platform, and the issue rate will depend on marketing strategy and the
underlying value of $VARA.

PARTNERSHIPS:

5% of total VARA tokens will be reserved for allocation to partnerships. None of these have been

issued to date, nor have any partnerships been signed yet that reserves any.

VARA Token Economics

v1.4 CONFIDENTIAL | PG 9
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
EARNINGS AND
BUYBACKS
The VARA platform offers a number of monthly subscription models, services, pack sales, purchases

etc. On every subscription and other qualifying transactions, a portion of that revenue will be

allocated to:

• A VARA token earnings pool (+-30% of revenue)

• An allocation toward buyback and burn of tokens (+-15% of revenue)

EARNINGS INFLOW EVENT

SUBSCRIPTION CONTENT/PACK SALES ENTRY/ACCESS FEES

55% 30% 15%

PLATFORM INCOME VARA TOKEN EARNINGS POOL BUYBACK AND BURN

ACCESS KEYS SOURCES

FUNDERS
REPURCHASE
FOUNDERS ACCESS KEY
VARA ON
HOLDERS
EXCHANGE
PERIODICALLY DIRECT
PLATFORM PURCHASE
SECONDARY SALES ON VARA
MARKETPLACE

ASSIGN REPURCHASED
VARA TO ONE-WAY WALLET

VARA Token Economics

v1.4 CONFIDENTIAL | PG 10
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
VARA PASS
SUBSCRIPTIONS
As part of the compensation plan for VARA, 4 subscription plans have been created. Premium

Gaming, Standard Gaming, Starter Gaming and Gaming Bond. The price of the subscriptions is set out

in the compensation plan.

Each of the Subscription Plans will contain a Gaming bond, that once the bond has been activated/

played a $2 amount would be allocated to the Pool Staking (See ‘Token Earnings Pool & Access’

section below) that is allocated to Access Key Holders.

TOKEN EARNINGS
POOL AND ACCESS
The VARA token earnings pool can be accessed by holders of a VARA Access Key. A total of 25,000

Access Keys have been minted as NFTs. A portion of these have been issued to funders or pre-

sold through premium packs. Some might be made available periodically for direct purchase on the

platform, with secondary sales supported by the platform marketplace as well as potential secondary

exchanges at a later stage.

In order to participate in earnings pools, an Access Key needs to be staked by its owner and matched

to their VARA accounts. The weight of participation in the earnings pool is determined by the volume

of VARA staked by the holder multiplied by the number of Access Keys held. The percentage of the

earnings pool garnered by a holder is equivalent to their weighted participation stake relative to the

sum of all participation weights during that period.

VARA Token Economics

v1.4 CONFIDENTIAL | PG 11
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
 BUYBACK
AND BURN
$VARA token values will be underpinned by a consistent allocation of funds to repurchase VARA

tokens on the open market from willing sellers. Approximately 15% of all platform revenues will

be utilized for this purpose, with the aim to reduce the total amount of tokens in circulation over

time from 1 billlion to only 1 million (a 1000x reduction). Combined with the Earnings Mechanic and

growth in the platform, this reinvestment into token value will provide significant value to token

holders over time.

VARA TOKENS AND VARA VALUE

1000 $30.00
$VARA TOKENS IN CIRCULATION (MILLIONS)

750

VALUE OF $VARA TOKEN

$20.00

500

$10.00

250

0 $0.00
0 2 4 6 8 10

VARA TOKENS VARA VALUE

VARA Token Economics

v1.4 CONFIDENTIAL | PG 12
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.
 WWW.VARA.GG
facebook.com/varahq
twitter.com/vara_earn
instagram.com/vara_earn

VARA Token Economics

v1.4 CONFIDENTIAL | PG 13
Last Modified: 14-Sep-23
© VARA - All Rights Reserved.